Aurobindo Pharma (AUROPHARMA) Q3 25/26 earnings summary

Executive summary

• Q3FY26 revenue reached ₹8,646 crore, up 8.4% year-over-year, driven by strong Europe and stable US performance, with net profit at ₹910 crore and EPS at ₹15.67, up 7.7% YoY.

• Standalone and consolidated unaudited financial results for Q3 and nine months ended December 31, 2025, were approved and reviewed without qualification by auditors.

• Strategic initiatives include ramping up Pen G production, expanding manufacturing footprint, executing bolt-on acquisitions, and expanding biosimilars portfolio.

• Free cash flow of $118 million generated in the quarter, with net cash (including investments) at $251 million after the Khandelwal Labs acquisition.

• Investment of ₹66 crores for a 26% stake in Garuda Renewables Private Limited to procure renewable energy.

Financial highlights

• Revenue from operations grew 8.4% YoY and 4.3% sequentially; gross profit margin improved by 129 bps YoY to 59.7%.

• Net profit for the period was INR 910 crore, after a one-time labor code amendment cost of INR 65 crore.

• EBITDA margin stood at 20.5%, up 11 bps YoY; net profit margin improved to 10.5%.

• R&D spend was ₹409 crore (4.7% of sales), focused on biosimilars and specialty products.

• Net cash position at $251 million as of Dec 2025, after acquisition-related outflows.

Outlook and guidance

• Annualized Pen G production expected to exceed 10,000 metric tons over the next 12 months, with yields improving.

• Strategic focus on expanding biosimilars portfolio, with multiple launches and regulatory filings planned through 2026.

• EBITDA margin target set at 20%-21% for FY 2026, with strong earnings growth visibility.

• Power purchase agreement with Garuda Renewables expected to reduce power costs and improve ESG profile.

• Growth to be driven by differentiated product portfolio, complex generics, and new product launches.